Predatory 'Lending' (Leasing)

[ctechbob]

I don't know if this is a new thing or not. First I've seen it, of course no one should EVER use this kind of service to buy anything. Especially a lifestyle purchase such as wheels.

Was flipping through the fresh hell that is Facebook tonight and an add for some big stupid truck wheels pops up with a link to a 'finance' company.

My immediate thought was, 'interest rates were high back when I was a kid for impulse purchases like wheels, I wonder how bad it is now'.

Clicked the link to find out.... Turns out, bad....extremely overly and impressively bad.

The company is somehow turning financing into a Lease. I'm not a super finance nerd, but I would think they're doing that to get around one law or another.

I snapped a couple screenshots. God help us. We wonder why things are the way they are.

Anyways, this stuff is out there, teach your kids to recognize and don't fall for this crap.

 

[02SE]

There's a sucker born every minute.

 

[CKN]

I despise the term "predatory lending". Any loan I have ever signed -I never had a gun to my head

 

[fsdork]

I despise the term "predatory lending". Any loan I have ever signed -I never had a gun to my head

Consider yourself fortunate that financial literacy is viewed as a given.

 

[ctechbob]

Also, this is being offered at auto repair shops for things like new brakes.

So say you're a single parent scaping by and you need maintenance for your only car.

I'm sure there are hundreds of those every day where you might as well be holding a gun to their head.

Sure, their life is their choice and they're responsible for that, but. You shouldn't be able to bend them over even more to line your pockets.

There's also evidence that the company is quick to report negatives to the credit agency but does not report the positives, or remove negatives if they are incorrect.

 

[Delta]

Man, this almost feels like one of those 700% interest tribal loans

 

[skyactiv]

Nothing new.

 

[97prizm]

I don't know if this is a new thing or not. First I've seen it, of course no one should EVER use this kind of service to buy anything. Especially a lifestyle purchase such as wheels.

Was flipping through the fresh hell that is Facebook tonight and an add for some big stupid truck wheels pops up with a link to a 'finance' company.

My immediate thought was, 'interest rates were high back when I was a kid for impulse purchases like wheels, I wonder how bad it is now'.

Clicked the link to find out.... Turns out, bad....extremely overly and impressively bad.

The company is somehow turning financing into a Lease. I'm not a super finance nerd, but I would think they're doing that to get around one law or another.

I snapped a couple screenshots. God help us. We wonder why things are the way they are.

Anyways, this stuff is out there, teach your kids to recognize and don't fall for this crap.


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Let me get this straight. The wheels are a grand with $1373 in finance charges? If anyone still remembers the spinner wheel fad circa 2005ish there were a few places that would rent them or rent to own. I never understood this.

 

[SC Maintenance]

Been going on forever. No one forced anyone to do anything, and while I don’t like it I don’t see a need for more regulation to save everyone from themselves.

 

[The_Jeff]

Sadly if you go to one of these ez-finance tire places there are hard-luck customers buying OE size all season tires on the same terms.

 

[Pablo]

I breaka you leg…

I despise the term "predatory lending". Any loan I have ever signed -I never had a gun to my head

Me too actually

Sure lots of nasty lenders out there and we can blame them all we want but who is creating this demand?

People with not a scintilla of self discipline in any aspect of their lives

 

[wwillson]

I despise the term "predatory lending". Any loan I have ever signed -I never had a gun to my head

The phrase should be, "Lending to financially stupid people who make impulsive purchases".

 

[nickaluch]

The phrase should be, "Lending to financially stupid people who make impulsive purchases".

I agree people I know who run into financial trouble was because a purchase they didn't need they wanted that's a big difference

 

[Pablo]

Don’t drag AM and his pop into this

 

[SC Maintenance]

I breaka you leg…


Me too actually

Sure lots of nasty lenders out there and we can blame them all we want but who is creating this demand?

People with not a scintilla of self discipline in any aspect of their lives

You can make the same parallel with druggies and the cartels. I do actually but then get flamed.

 

[Pablo]

You can make the same parallel with druggies and the cartels. I do actually but then get flamed.

Perfect analogy/fit

 

[AZjeff]

Don't think the country is going down in flames because a very small number of people are dumb enough to do this. It says right in the description "you may pay more than double the retail price." To further prove their financial prowess people who do this probably go to the payday loan place to get their money faster.

 

[cptbarkey]

How else will people get their wagon wheels on their man jewelry?
What happens when the lease ends? Is your jacked up diesel on cinder blocks on the curb?

 

[rszappa1]

How else will people get their wagon wheels on their man jewelry?
What happens when the lease ends? Is your jacked up diesel on cinder blocks on the curb?

you then get suckered into another lease and because you are over the miles that is rolled into you new lease and it just continues to get deeper and deeper....

 

[Chris142]

Let me get this straight. The wheels are a grand with $1373 in finance charges? If anyone still remembers the spinner wheel fad circa 2005ish there were a few places that would rent them or rent to own. I never understood this.

Rent a wheel was popular here